Tag Archives: Wall Street

You Say You Want a Revolution…

31 Sunday Jan 2016

Posted by in Bernie Sanders, Campaign Financing, Corporations, Democrats, Election 2016, financial regulation, health care, Hillary Clinton, Obama administration, Politics, Supreme Court, Wall Street

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…well you know, we don’t need one.
Let me get his out of the way first. I could not possibly care less about who gets the Republican nomination for president. Doesn’t matter one iota to me, I ain’t voting for any of them. No way, no how. I do, however, care who gets the Democratic nomination. Very much. Much has been gained during the Obama administration, naysayers on the left notwithstanding, and much stands to be lost should Democrats nominate the wrong person. The wrong person is Bernie Sanders.

I suppose that by the time one is pushing 60 years of life on this thing we call Earth, one should find very little at which to be surprised. One would be wrong. I find myself surprised at the intelligent, pragmatic, and otherwise generally clear-thinking and practical people who have been and continue to be taken in by the so-called Bernie Sanders revolution.

This isn’t original (read it somewhere but can’t remember where, another consequence of those nearly 60 years) but I wholeheartedly agree with it. The 2016 election isn’t about changing the guard, it’s about guarding the change. We changed the guard in 2008. After 8 years of the utter disaster that was Bush/Cheney, the American people were ready for a new direction–a completely different direction–we got that with the historic election of Barack Obama. Now we need a president who can guard the change. Who can first and foremost protect what has been accomplished and, where possible, make some incremental improvements. That isn’t nearly as exciting and sexy as “revolution” but I’ll take it 7 days a week and twice on Sunday.

I suppose the appeal of the revolution is that it sounds so good and so simple. Medicare For All, Break Up the Banks, Overturn Citizens United. Yeah buddy, let’s do it. But drill down a little bit and it isn’t quite that good or that simple. Yes, the cost of health care is still a problem, the power of Wall Street is as well, and the influence of money on political campaigns needs to be addressed. But all these are complex and intricate issues which have reached the point they are now over years and even decades. They won’t be fixed with simple slogans and 8 page plans that don’t take into account the ramifications that would ensue should they be enacted.

Medicare For All. Does anybody actually believe that the health care needs of a family of four can be covered for $460 a year and paid for by nothing but a measly 2% increase in income taxes? Doesn’t pass my smell test. The state of Vermont found that out with their attempt to implement single-payer. When pencil met paper the result was closer to a 20 percent tax hike and a doubling of state expenditures.

Abolish private health insurance? What about the millions of Americans who make their living working for them? The private insurers aren’t just the few fat cat CEOs who sit at the top receiving exorbitant compensation. There are millions of Americans who work for not only those companies directly but whose jobs are dependant on their existence. Claims, billing, etc. What happens to them if private health insurance goes away? Does the Sanders plan lay out what happens to them should the “revolution” hit health care, and what would be the effects on the economy as a whole should private health insurance be outlawed? Nope.

The way forward is not to scrap the ACA after only 5 years, but to build on it. Social Security, Medicare, Medicaid, none of these were perfect originally, neither is the ACA. But it’s damn sure better than what we had before, and in its infancy and with all its shortcomings has helped millions of Americans. To scrap it for a hastily concocted and not well thought out alternative would be foolish.

Break Up The Big Banks. Okay, then what?

“For example, to break up the big banks sounds good and well but what happens to the customers of those banks that rely on them for their savings accounts? What about small businesses that rely on those banks for loans? What about homeowners who pay a mortgage through the bank? Are all these accounts then shifted toward community banks? If so, which ones? What if this new bank is far away from someone’s home or business?”

And again, what is the effect on the economy of the break up and the loss of jobs sure to follow? As with the private insurers, these institutions are a significant portion of our economy and encompass more than just the guys at the top who get all the headlines. Lots of jobs for people not named Jamie Dimon or Lloyd Blankfein depend on Chase, Bank of America, Citi, et al. What happens to those people?

No, we don’t need to take that risk. Dodd-Frank, despite all its imperfections, is doing its job. Could it be stronger? Absolutely. But gradually and incrementally, as boring as that is, is the only way to proceed, both practically and politically.

Overturn Citizens United. This is a recording, it ain’t that simple. The Supreme Court can’t just take it upon themselves to overturn a standing decision. A case must be brought, in almost every situation, after having gone through years in lower courts. This whole “money is speech” and “corporations are people” mess got started with the Buckley v Valeo decision. In 1976. The rotten fruit of that decision became Citizens United. In 2010. For those keeping score, that’s 34 years. Changing the system will take time and a Supreme Court amenable to hearing and reviewing cases brought before it. We don’t have that now, revolution notwithstanding.

Just to be really blunt, Sanders can’t win in November. I know his supporters like to claim that he polls better against Republican candidates than does Hillary Clinton. Two things about that. One, January polls are about as predictive of November election results as Tarot cards and tea leaves. Two, should Sanders be nominated, and once Republicans settle on a nominee and turn all their blazing guns on Sanders, he will be destroyed by months of negative and yet more negative ads. He will go down and take a lot of people and a lot of progress with him in the process.

We can’t afford to let that happen. Change is hard, change takes time, and nobody waves a magic wand. The way forward is to build on the solid foundation laid by what will be the 8 years of President Obama. Given the two choice facing Democratic primary voters (sorry Martin, but it’s true) Hillary Clinton is the right person for that job.

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GFY, S&P

27 Wednesday Jul 2011

Posted by in economy, Financial Crisis, Wall Street

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As the extortionists at Standard and Poor’s threaten a credit rating downgrade, not just if the debt ceiling isn’t raised but if the deficit isn’t cut by $4 trillion, Robert Reich points out that if the crooks at S& P had done their effin’ jobs the deficit and debt that they demand be cut wouldn’t be where it is today:

“Who is Standard & Poor’s to tell America how much debt it has to shed in order to keep its credit rating? Standard & Poor’s didn’t exactly distinguish itself prior to Wall Street’s financial meltdown in 2007. Until the eve of the collapse it gave triple-A ratings to some of the Street’s riskiest packages of mortgage-backed securities and collateralized debt obligations.”

A practice from which S&P profited handsomely:

“S&P’s net annual revenues from ratings nearly doubled from $517 million in 2002, to $1.16 billion in 2007.”

And what happened to those securities S&P stamped AAA?

“…90% of the subprime-backed mortgage securities S&P and its competitors rated AAA in 2006-2007 – which means they’re as sound as Treasury notes – were later downgraded to junk bond status.”

Back to Reich:

“Standard & Poor’s (along with Moody’s and Fitch) bear much of the responsibility for what happened next. Had they done their job and warned investors how much risk Wall Street was taking on, the housing and debt bubbles wouldn’t have become so large – and their bursts wouldn’t have brought down much of the economy.

Had Standard & Poor’s done its job, you and I and other taxpayers wouldn’t have had to bail out Wall Street; millions of Americans would now be working now instead of collecting unemployment insurance; the government wouldn’t have had to inject the economy with a massive stimulus to save millions of other jobs; and far more tax revenue would now be pouring into the Treasury from individuals and businesses doing better than they are now.

In other words, had Standard & Poor’s done its job, today’s budget deficit would be far smaller.

And where was Standard & Poor’s…during the George W. Bush administration – when W. turned a $5 trillion budget surplus bequeathed to him by Bill Clinton into a gaping deficit? Standard & Poor didn’t object to Bush’s giant tax cuts for the wealthy. Nor did it raise a warning about his huge Medicare drug benefit…or his decision to fight two expensive wars without paying for them.

Add Bush’s spending splurge and his tax cuts to the expenses brought on by Wall Street’s near collapse – and today’s budget deficit would be tiny.

Put another way: If Standard & Poor’s had been doing the job it was supposed to be doing between 2000 and 2008, the federal budget wouldn’t be in a crisis — and Standard & Poor’s wouldn’t be threatening the United States with a downgrade if we didn’t come up with a credible plan for lopping $4 trillion off it.”  

So why in the hell is anybody listening to what Standard and Poor’s has to say? If we had a Justice Department that was actually interested in justice, the S&P analysts would be behind bars instead of issuing threats.

Just a Little Bit of History Repeating?

26 Tuesday Jul 2011

Posted by in budget, economy

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Dave Johnson at Campaign for America’s Future has an excerpt from Naomi Klein’s Shock Doctrine that sounds eerily familiar:

“In February 1993, Canada was in the midst of financial catastrophe, or so one would have concluded by reading the newspapers and watching TV. “Debt Crisis Looms,” screamed a banner front-page headline in the national newspaper, the Globe and Mail. A major national television special reported that “economists are predicting that sometime in the next year, maybe two years, the deputy minister of finance is going to walk into cabinet and announce that Canada’s credit has run out…Our lives will change dramatically.

The phrase “debt wall” suddenly entered the vocabulary. What it meant was that, although life seemed comfortable and peaceful now, Canada was spending so far beyond its means that, very soon, powerful Wall Street firms like Moody’s and Standard and Poor’s would downgrade our national credit rating from its perfect Triple A status to something much lower…The only solution, we were told, was to radically cut spending on such programs as unemployment insurance and health care. Sure enough, the governing Liberal Party did just that, despite having just been elected on a platform of job creation.

Two years after the deficit hysteria peaked, the investigative journalist Linda McQuaig definitively exposed that a sense of crisis had been carefully stoked and manipulated by a handful of think tanks funded by the largest banks and corporations in Canada…McQuaig went to Moody’s Wall Street head office and spoke with Vincent Truglia, the senior analyst in charge of issuing Canada’s credit rating. He told her something remarkable: that he had come under constant pressure from Canadian corporate executives and bankers to issue damning reports about the country’s finances,

…[F]or the Canadian financial community, the “deficit crisis” was a critical weapon in a pitched political battle. At the time Truglia was getting those strange calls, a major campaign was afoot to push the government to lower taxes by cutting spending on social programs such as health and education. Since these programs are supported by an overwhelming majority of Canadians, the only way the cuts could be justified was if the alternative was national economic collapse – a full blown crisis.

…By the time Canadians learned that the “deficit crisis” had been grossly manipulated by the corporate-funded think tanks, it hardly mattered – the budget cuts had already been made and locked in. As a direct result, social programs for the country’s unemployed were radically eroded and have never recovered, despite many subsequent surplus budgets.”

All the Bad News That Fits

23 Saturday Jul 2011

Posted by in Afghanistan, budget, Congress, economy, Iraq, Medicaid, Medicare, Obama, Politics, Social Security, Unemployment, Wall Street

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“I met a girl who sang the blues, and I asked her for some happy news. She just smiled and turned away.”

In the latest episode of “As the Debt Ceiling Turns”; Boehner walks, Obama has a hissy fit, and Pelosi throws yet another plan into the mix:

“House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to avoid a default that involves up to $2.5 trillion in spending cuts — without agreed-upon new tax revenues — if Medicare, Medicaid, and Social Security are protected from the debt limit brinksmanship.”

Yes, by all means, let’s cut spending. Never mind this:

“Companies are laying off employees at a level not seen in nearly a year, hobbling the job market and intensifying fears about the pace of the economic recovery.

Cisco Systems Inc., Lockheed Martin Corp. and troubled bookstore chain Borders Group Inc. are among those that have recently announced hefty cuts, while recent government numbers underscore how companies have shifted toward cutting jobs.

The increase in layoffs is a key reason why the U.S. recorded an average of only 21,500 new jobs over the past two months, far below the level needed to bring down unemployment, which now stands at 9.2%.”

Or this:

“Initial weekly unemployment claims increased to 418,000. The 4 week moving average is 421,250. A weekly average above 400,000 does not indicate job growth and we now have a pattern of perpetual disaster for U.S. citizens trying to earn a living.”

About that default deadline, is it August 2, August 10, or August 15? Nobody seems to know for sure.

The Money Party has some questions and answers on Obama’s handling of the budget never let a good crisis go to waste. Here’s just one:

“Question:  Why did President Obama put Social Security and Medicare on the table in the budget negotiations when 80% of the people oppose cuts to these programs?

Answer:  The president is not in office to represent those people.  He was selected, funded and carried over the finish line by corporate America.  Look at the appointment of Wall Streeter Timothy Geithner, the bailouts, and the failure to prosecute any of the crooks who caused the current recession. He’s serving the people who put him in office.  Those people don’t need Social Security and Medicare.”

Not only serving the people who put him in office, but serving those who he is depending on to keep him there:

“Among big fundraisers, Obama has drawn close to a third of his money from people in the finance industry, up from 20% during his 2008 campaign, according to an analysis by the Center for Responsive Politics.

The amount raised so far is more than two-thirds what Wall Street elites helped Obama raise in his entire 2008 campaign. And it is enough to make the finance world the single largest source of big-ticket donations for Obama.”

While we cut the social safety net out from under our most vulnerable at home, billions are going unaccounted for in Afghanistan:

“SIGAR [Special Inspector General for Afghanistan Reconstruction] found that U.S. agencies have limited visibility over U.S. cash that enters the Afghan economy — leaving it vulnerable to fraud and diversion to the insurgency…”SIGAR auditors found that U.S. agencies have not done all they can to safeguard U.S. funds, and the Afghan government has not provided the cooperation needed to build a strong, secure financial system.”

Also on the Endless War front, the State Department is telling the Special Inspector General in Iraq to mind his own business when it comes to State’s mercenary army in that country:

“By January 2012, the State Department will do something it’s never done before: command a mercenary army the size of a heavy combat brigade. That’s the plan to provide security for its diplomats in Iraq once the U.S. military withdraws. And no one outside State knows anything more, as the department has gone to war with its independent government watchdog to keep its plan a secret.

Stuart Bowen, the Special Inspector General for Iraq Reconstruction (SIGIR), is essentially in the dark about one of the most complex and dangerous endeavors the State Department has ever undertaken, one with huge implications for the future of the United States in Iraq. “Our audit of the program is making no progress,” Bowen tells Danger Room.

For months, Bowen’s team has tried to get basic information out of the State Department about how it will command its assembled army of about 5,500 private security contractors. How many State contracting officials will oversee how many hired guns? What are the rules of engagement for the guards? What’s the system for reporting a security danger, and for directing the guards’ response?

And for months, the State Department’s management chief, former Ambassador Patrick Kennedy, has given Bowen a clear response: That’s not your jurisdiction. You just deal with reconstruction, not security. Never mind that Bowen has audited over $1.2 billion worth of security contracts over seven years.”

To be continued…unfortunately.

Greenwald: Obama Gutting Core Democratic Principles

22 Friday Jul 2011

Posted by in Democrats, drone strikes, George W. Bush, Libya, Medicare, Obama, Social Security, Wall Street

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Yet another gem from Glenn Greenwald in today’s Guardian:

“[I]n 2009, clear signs emerged that President Obama was eager to achieve what his right-predecessor could not: cut social security. Before he was even inaugurated, Obama echoed the right’s manipulative rhetorical tactic: that (along with Medicare) the program was in crisis and producing “red ink as far as the eye can see.” President-elect Obama thus vowed that these crown jewels of his party since the New Deal would be, as Politico reported, a “central part” of his efforts to reduce the deficit.

The next month, his top economic adviser, the Wall Street-friendly Larry Summers, also vowed specific benefit cuts to Time magazine. He then stacked his “deficit commission” with long-time advocates of social security cuts.

Many progressives, ebullient over the election of a Democratic president, chose to ignore these preliminary signs, unwilling to believe that their own party’s leader was as devoted as he claimed to attacking the social safety net. But some were more realistic. The popular liberal blogger and economist Duncan “Atrios” Black, who was one of the leaders of the campaign against Bush’s privatization scheme, vowed in response to these early reports:

The left … will create an epic 360-degree shitstorm if Obama and the Dems decide that cutting social security benefits is a good idea.

Fast forward to 2011: it is now beyond dispute that President Obama not only favours, but is the leading force in Washington pushing for, serious benefit cuts to both social security and Medicare.

[…]

The same Democratic president who supported the transfer of $700bn to bail out Wall Street banks, who earlier this year signed an extension of Bush’s massive tax cuts for the wealthy, and who has escalated America’s bankruptcy-inducing posture of Endless War, is now trying to reduce the debt by cutting benefits for America’s most vulnerable – at the exact time that economic insecurity and income inequality are at all-time highs.

Where is the “epic shitstorm” from the left which Black predicted? With a few exceptions – the liberal blog FiredogLake has assembled 50,000 Obama supporters vowing to withhold re-election support if he follows through, and a few other groups have begun organizing as well – it’s nowhere to be found.

Therein lies one of the most enduring attributes of Obama’s legacy: in many crucial areas, he has done more to subvert and weaken the left’s political agenda than a GOP president could have dreamed of achieving. So potent, so overarching, are tribal loyalties in American politics that partisans will support, or at least tolerate, any and all policies their party’s leader endorses – even if those policies are ones they long claimed to loathe.

[…]

He has gone further than his predecessor by waging an unprecedented war on whistleblowers, seizing the power to assassinate U.S. citizens without due process far from any battlefield, massively escalating drone attacks in multiple nations, and asserting the authority to unilaterally prosecute a war (in Libya) even in defiance of a Congressional vote against authorizing the war.

And now he is devoting all of his presidential power to cutting the entitlement programs that have been the defining hallmark of the Democratic party since Franklin Roosevelt’s New Deal. The silence from progressive partisans is deafening – and depressing, though sadly predictable.

[…]

Obama is now on the verge of injecting what until recently was the politically toxic and unattainable dream of Wall Street and the American right – attacks on the nation’s social safety net – into the heart and soul of the Democratic party’s platform. Those progressives who are guided more by party loyalty than actual belief will seamlessly transform from virulent opponents of such cuts into their primary defenders.

And thus will Obama succeed – yet again – in gutting not only core Democratic policies, but also the identity and power of the American Left.”

Moody’s Threatens Credit Rating Downgrade

14 Thursday Jul 2011

Posted by in budget, economy, Wall Street

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Wasn’t it Moody’s who was handing out AAA ratings like candy on Halloween for Wall Street’s toxic MBS, CDO crap not too long ago?

“The “rising possibility” that the debt limit will not be raised by Aug. 2 has driven Moody’s Investors Service to put the nation’s triple-A credit rating on review for a downgrade.

In a statement, the credit-rating agency warned that the risk of a default on U.S. obligations, while low, had risen. A default would “fundamentally alter Moody’s assessment of the timeliness of future payments, and a AAA rating would likely no longer be appropriate,” Moody’s stated shortly after markets closed Wednesday.

The agency also warned that even if the debt limit was raised in time, the nation’s credit rating would retain a negative outlook if no “substantial and credible agreement” also was struck to reduce the deficit “beginning within the next few years.”

Forgive me if I question your credibility.

Why Is This So Damn Difficult?

09 Saturday Jul 2011

Posted by in Afghanistan, budget, economy, Iraq, Medicare, Obama, Politics, Social Security, Taxes, Unemployment, Wall Street

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This is so simple it’s ridiculous. The three major causes of the dramatic increases in debt and deficit are:

1) The Bush, now Obama, tax cuts.

2) The wars in Iraq and Afghanistan.

3) The financial collapse caused by Wall Street greed.

Ending the tax cuts just for those making over $250,000 will bring in $700 billion over 10 years. The wars cost about $140 billion a year. End both and we save $1.4 trillion over the same 10-year period. A financial transaction tax of just one quarter of one percent will result in $150 billion a year, $1.5 trillion over 10. There’s $3.6 trillion over 10 years, which is just about the same amount the debt ceiling dealers are talking about cutting spending. And we haven’t touched Social Security, Medicare, Medicaid, education, etc. Yet none of these three are even on the debt ceiling/spending cut/revenue increases negotiating table. Why?

The American Society of Civil Engineers estimates the cost of repairing our crumbling infrastructure to be $2.2 trillion over 5 years. Do you see where I’m going here? Take the money we’ve saved, not from cutting the safety net out from under our most vulnerable who had nothing to do with the debt explosion and who did not benefit from it, but from the root causes and from those who did.

The result is millions of Americans have jobs. They’re paying income taxes, Social Security taxes, Medicare taxes. They no longer need unemployment, food stamps, or other forms of government assistance. They’re buying stuff, which creates demand for stuff, which creates more jobs, which creates more demand for stuff. And so on, and so on, and so on. Why is this so damn difficult?

But what do we get from our “leaders?” Gobbledegook and gibberish. Like President Obama’s remarks yesterday after the release of the horrible job numbers. Things like streamlining the patent process, advancing more so-called free trade agreements (which costs jobs rather that create them) and this:

“[T]o put our economy on a stronger and sounder footing for the future, we’ve got to rein in our deficits and get the government to live within its means, while still making the investments that help put people to work right now and make us more competitive in the future.

The sooner we get this done, the sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire and will provide more confidence to the rest of the world as well..”

Beside the fact that this is straight of the Republican playbook for economic growth, it’s nonsense (but I’m being redundant). Live within our means while making investments? What the hell is that? Give businesses the certainty they need? Businesses don’t need certainty, they need customers. Customers create jobs, not the ever-elusive confidence unicorn. Why is this so damn difficult?

The president’s mouthpiece at the Council of Economic Advisers, Austan Goolsbe offered more of the same:

“Today’s report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut, pass the pending free trade agreements, and create an infrastructure bank to help put Americans back to work.  It also underscores the need for a balanced approach to deficit reduction that instills confidence and allows us to live within our means without shortchanging future growth.”

*Sigh* Can’t anybody here play this game?

Just a Man of the People

25 Saturday Jun 2011

Posted by in Obama, Wall Street

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FDR: I welcome their hatred. Obama: Let’s kiss and make up.

“Last night Obama headed to the Upper East Side to wine and dine Wall Street. The DNC fundraiser at tony restaurant Daniel cost attendees $35,800 each, and a source told Ben White at Morning Money that the event netted $2.4 million. So his calculations were that at least 67 financiers had come to the party.

“Wall Street may hate Washington but sources tell M.M. that last night’s $35,800 per-head event… was a boffo success packed with hedge fund and private equity types.”

[…]

The dinner was part of Obama’s plan to win back the group of financiers that helped him cruise past McCain in 2008, many of whom were turned off by the President’s labeling of them as “fat cats” near the beginning of his term.

Obama is hoping to win over hedge fund titans who were previously bundlers for the Clintons, as well as a much more challenging task — winning Republicans. Though Democrats won’t be so easily wooed this time around, apparently…

“One Democratic financier invited to this month’s dinner… said it was ironic that the same president who once criticized bankers as “fat cats” would now invite them to dine at Daniel…”

Here’s a little tip that might help the fat cats (oops, sorry) and their hurt fee-fees. Something I learned a while back. Don’t listen to what this president says, watch what he does. Those two streets seldom intersect.

Obama Makes Nice-Nice With the Banksters

13 Monday Jun 2011

Posted by in economy, financial reform, Obama, special interests, too big to fail, Wall Street

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FDR, 1936:

“We had to struggle with the old enemies of peace–business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.

Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me–and I welcome their hatred.

I should like to have it said of my first Administration that in it the forces of selfishness and of lust for power met their match. I should like to have it said of my second Administration that in it these forces met their master.”

Barack Obama, 2011:

Can’t we all just get along?

“A few weeks before announcing his re-election campaign, President Obama convened two dozen Wall Street executives, many of them longtime donors, in the White House’s Blue Room.

 The guests were asked for their thoughts on how to speed the economic recovery, then the president opened the floor for over an hour on hot issues like hedge fund regulation and the deficit.

Mr. Obama, who enraged many financial industry executives a year and a half ago by labeling them “fat cats” and criticizing their bonuses, followed up the meeting with phone calls to those who could not attend.

The event, organized by the Democratic National Committee, kicked off an aggressive push by Mr. Obama to win back the allegiance of one of his most vital sources of campaign cash — in part by trying to convince Wall Street that his policies, far from undercutting the investor class, have helped bring banks and financial markets back to health.

[…]

 The president’s top financial industry supporters say they are confident that the support Mr. Obama needs will ultimately be there, despite the financial industry’s unhappiness over his efforts to tighten regulation of their businesses. But it is clear that those supporters will have to work much harder to win over the financial services industry than they did in 2008, before Wall Street’s bust, the subsequent clashes over policy and the sometimes bitter personal differences that lingered afterward.”

Just what in the Sam freaking Hill does the financial industry have to be unhappy about? “Too big to fail” is bigger than ever, no meaningful reform of the industry was passed, their salaries and bonuses are back at or above what they were before these greedy bastards nearly wrecked the world’s economy, none of them has gone to jail, and one of their lackeys is still the Treasury Secretary. Yeah, the big banks are back to good health alright. Nobody else is, but they are.

 “And as Mr. Obama seeks to rebuild, Mitt Romney, a former Massachusetts governor who is seeking the Republican presidential nomination, is using his background as a venture capital executive and his policy proposals to woo financial-industry donors.

Last week, Mr. Romney held three fund-raisers in Greenwich, Conn., and New York, including a reception hosted by Anthony Scaramucci, a hedge fund manager who donated to Mr. Obama in 2008. Mr. Scaramucci said he wanted a president who embodied pragmatism and middle-of-the-road solutions. In 2008, that candidate was Mr. Obama, he said; today, it is Mr. Romney.”

So if next year’s presidential election comes down to Obama vs. Romney it’s just a question of whose lips best fit on the bankster’s backsides as to who gets the biggest campaign contributions, not to mention the attached strings that come with said contributions. No matter who wins, Wall Street can’t lose.

And the beat goes on.

White House Moving to Wall Street

04 Tuesday Jan 2011

Posted by in economy, Goldman Sachs, Obama, Obama administration, Politics, special interests, Wall Street

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Breaking news: In order to cut down on travel time through the revolving door for President Obama’s outgoing and incoming team of  advisers, the White House is moving from 1600 Pennsylvania Avenue. Here’s the new location:


Might as well be:

“President Barack Obama is considering naming William Daley, a JPMorgan Chase & Co. executive and former U.S. Commerce secretary, to a high-level administration post, possibly White House chief of staff, people familiar with the matter said.

[…]

After serving as president of SBC Communications for more than two years, he joined New York-based JPMorgan, the second- biggest U.S. bank by assets, in 2004, serving as Midwest chairman and the bank’s head of corporate responsibility.”

Corporate responsibility. Like a 25% increase in outsourcing to India in 2009. Like using the $25 billion in bailout money that was intended to loosen up lending to become “more active on the acquisition side.” That kind of “corporate responsibility?”

Oxy (clap clap clap) moron (clap clap clap). Oxy (clap clap clap) moron (clap clap clap).

Why Daley?

“The administration is seeking to repair relations with the business community after coming under fire from industry groups, including the U.S. Chamber of Commerce. The nation’s biggest business lobbying group opposed Obama’s health-care and financial-regulatory overhauls and committed $75 million to political ads in the midterm congressional elections, mainly directed against Democrats.

…Obama is generating more optimism among corporate executives after a series of actions and overtures, including a deal to extend the Bush-era tax cuts, efforts to boost exports such as a U.S.-South Korea free-trade agreement, and a loosening of controls on some technology sales.”

Well isn’t that just wonderful. Makes me feel all warm inside.

Then there’s the search for someone to replace Larry Summers as head of the National Economic Council (NEC):

“…it seems that the shortlist to replace Larry Summers at the NEC has been whittled down to three men — Gene Sperling, Roger Altman, and Richard Levin…The…notable characteristic of the three is that they’re all multi-millionaires with close ties to Wall Street. None more than Altman, of course, who has his own bank. But Levin is on the board of American Express, which paid him $181,362 in 2009, and where he has shares and “share equivalent units” worth $539,000.”

That leaves Gene Sperling, currently one of Geithner’s underlings, and the person who is reportedly the leading candidate for the job:

“Goldman Sachs paid Sperling $887,727 for advice on its charitable giving. That made the bank his highest-paying employer. Even Geithner’s chief of staff Patterson, who was a full-time lobbyist at the firm, did not make as much as Sperling did on a part-time basis. Patterson reported earning $637,492 from Goldman Sachs [in 2008].”

Ezra Klein:

“It is very hard to believe that Goldman Sachs wasn’t attempting to buy influence with a politically savvy economist who had good relations — and would later go to work for — the incoming Democratic administration.”

More on Sperling:

“…he has played key roles crafting the administration’s economic policies, most recently in forging Obama’s compromise with Republican leaders to extend the 2001 and 2003 income tax cuts.”

Just peachy.